The agreement is between the Board and a person. The principle to be followed in case of merger and demerger is that the person (company) who makes the advance pricing agreement (APA) application or enters APA would only be entitled for the rollback provision in respect of international transactions undertaken by it in the rollback years. Other person (companies) who have merged with this person (company) would not be eligible for the rollback provisions.
Example of merger
if A, B and C merge to form C and C is the APA applicant, then the agreement can only be entered into with C and only C would be eligible for the rollback provisions. And if A and B merge to form a new company C and C is the APA applicant, then nobody would be eligible for rollback provisions
Example of demerger
If A has entered into APA and subsequently demerges into A and B , then only A will be eligible for rollback for international transaction covered under APA. As B was not in existence in rollback years, availing of rollback to B does not arise
